Education Dept. Renews Akamai Software for $11M, Awarded to New Tech Solutions
Contract Overview
Contract Amount: $11,002,840 ($11.0M)
Contractor: NEW Tech Solutions, Inc.
Awarding Agency: Department of Education
Start Date: 2024-04-01
End Date: 2027-03-31
Contract Duration: 1,094 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AKAMAI SOFTWARE RENEWAL
Place of Performance
Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538
Plain-Language Summary
Department of Education obligated $11.0 million to NEW TECH SOLUTIONS, INC. for work described as: AKAMAI SOFTWARE RENEWAL Key points: 1. Spending on Akamai software renewal totals $11.0M over 3 years. 2. Competition was full and open after exclusion of sources. 3. Risk is moderate due to software reliance and contract duration. 4. Sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: good
The contract value of $11.0M for Akamai software renewal appears reasonable given the 3-year term. Benchmarking against similar software renewals for enterprise-level solutions would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential software services, with competition aiming to ensure value for money.
Public Impact
Students and educators will continue to benefit from the services provided by Akamai software. The renewal ensures continuity of critical IT infrastructure for the Department of Education. The contract supports a technology provider, contributing to the IT sector's economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if alternatives are not explored.
- Reliance on a single software provider for critical functions.
Positive Signals
- Competitive award process ensures fair pricing.
- Clear contract duration and renewal terms.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). Spending benchmarks for similar IT service contracts vary widely based on scope and provider.
Small Business Impact
The contract was awarded to New Tech Solutions, Inc. Analysis of whether this awardee is a small business is not provided in the data. Further investigation is needed to determine small business participation.
Oversight & Accountability
The Department of Education is responsible for oversight of this contract. Standard procurement regulations and contract management practices are expected to be followed to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for price increases in future renewals.
- Dependence on a single vendor for critical services.
- Lack of detailed service description in the award data.
- Need for further analysis on small business impact.
Tags
other-computer-related-services, department-of-education, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $11.0 million to NEW TECH SOLUTIONS, INC.. AKAMAI SOFTWARE RENEWAL
Who is the contractor on this award?
The obligated recipient is NEW TECH SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2024-04-01. End: 2027-03-31.
What specific Akamai software services are being renewed, and what is their criticality to the Department of Education's operations?
The provided data does not specify the exact Akamai software services. However, given the context of the Department of Education, these services likely relate to network security, content delivery, or cloud computing essential for their online platforms, educational resources, and data management. Understanding the specific services is crucial for assessing the true value and necessity of the renewal.
What were the key factors in excluding other sources prior to the full and open competition?
The data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that initially, there might have been a reason to consider excluding certain sources, perhaps due to specific technical requirements, existing infrastructure compatibility, or prior performance. However, the subsequent 'full and open' nature implies that after any initial considerations, the opportunity was opened to all qualified bidders, mitigating potential risks associated with limited competition.
How does the $11.0M renewal cost compare to the previous contract period or market rates for similar Akamai services?
Without historical contract data or detailed market analysis for comparable Akamai services, a precise comparison is difficult. The $11.0M over three years ($3.67M annually) should be benchmarked against industry standards for similar enterprise-level software solutions. The 'good' value rating suggests it is likely competitive, but a deeper dive into pricing trends and competitor bids would solidify this assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,338,329
Exercised Options: $11,002,840
Current Obligation: $11,002,840
Actual Outlays: $7,835,096
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC82B
IDV Type: GWAC
Timeline
Start Date: 2024-04-01
Current End Date: 2027-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-03-30
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